ABX Resumes Slide Below Record Low Close

From Reuters:

By Nancy Leinfuss

NEW YORK (Reuters) - Benchmark U.S. subprime mortgage ABX indexes slid further in nervous trade on Wednesday, as Moody's Investors Service weighed in with another downgrade warning to $5.0 billion of collateralized debt obligations, traders said.

ABX 07-1 "BBB-" index, which is tied to loans made to risky borrowers in last year's second half, opened at 50.50 bid on Wednesday but quickly sank to a 49 bid by afternoon, falling below Tuesday's record low close of 51.42, traders said.

The ABX 06-2 index, which references loans from 2006's first half, opened around 58 bid but slid to 55.16 bid in afternoon trade, also falling below Tuesday's record low 58.58 close, traders said.